- Cloud billings grew 89% year-over-year
- Cloud deferred revenue grew 113% year-over-year
- Cloud revenue grew 64% year-over-year
- Subscription revenue grew 23% year-over-year; representing 63% of total revenues
- Subscription gross margin expanded to 77%
- Total deferred revenue increased 33% year-over-year to $47.3 million
HRchitect featured Saba in our release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. A.G. Lambert, the VP of Marketing with Saba appeared on the HRchitect WebMingle on August 14, 2009. Matt Lafata with HRchitect attended the 2010 Saba Global Summit and Analyst Day in Boston, MA. Matt Lafata & Tiffany Appleby attended the Saba Global Sales Rally FY12 in June 2011 in Redwood City, CA.
If you are looking for a new Talent Management System, or any HR system, don’t rely solely on “recommendations” or published reports. Do yourself a huge favor and talk to HRchitect first. After 15 years, HRchitect has unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation. Simply put, do not invest in any kind of HR technology without consulting with the experts first. HRchitect is always available to help!
Saba (NASDAQ: SABA), the premier People Cloud provider, today reported financial results for its second quarter ended November 30, 2011.
“With cloud billings growing over 80% for the second straight quarter, we believe we have emerged as one of the fastest growing public cloud businesses,” said Bobby Yazdani, Founder and CEO, Saba. “We signed twice as many one million dollar deals this quarter as we did last quarter, and in the second quarter alone, we added over one million subscribers to the Saba People Cloud.”
Results for the Second Quarter Fiscal Year 2012
Revenues: Total GAAP revenues were $30.4 million in the second quarter of fiscal year 2012, up 4% from $29.2 million in the same quarter last year. Total non-GAAP revenues in the second quarter of fiscal year 2012 were $30.6 million, up 5%, compared to $29.2 million in the same quarter last year. On a GAAP basis, cloud revenues in the second quarter increased 64% to $9.7 million from $5.9 million in the same quarter of the prior year. Non-GAAP revenues reflect the impact to revenue of fair value adjustments to deferred revenue due to acquisitions.
Deferred Revenue: Total deferred revenue was $47.3 million at the end of the second quarter of fiscal year 2012, up 33% year-over-year. Deferred revenue from cloud subscriptions grew 113% year-over-year to $23.8 million at the end of the second quarter.
Earnings (Loss) per Share: GAAP loss per share was $0.16 in the second quarter of fiscal year 2012 compared to a loss per share of $0.03 in the same period last year. Non-GAAP loss per share was $0.10 in the second quarter of fiscal year 2012 compared to earnings per share of $0.02 in the second quarter of the last fiscal year.
Our non-GAAP results are calculated by adjusting GAAP results for the impact of certain items including (i) non-cash amortization of intangibles, (ii) non-cash share-based compensation expenses, (iii) non-operating reorganization costs, (iv) the impact to revenue of fair value adjustments to deferred revenue due to acquisitions and (v) other acquisition related costs. A reconciliation of GAAP to non-GAAP results is included in the financial statements accompanying this press release.
Cash: Cash used in operations was $4.4 million in the second quarter of fiscal year 2012, and cash and cash equivalents at November 30, 2011 were $15.0 million. Saba typically uses cash in the first half of the fiscal year and generates positive cash flow in the second half of the fiscal year due to strong subscription renewals in the third and fourth quarters.
Key Business Highlights: Saba added 29 new enterprise customers in the quarter including Vodafone, Royal Dutch Shell, ANZ Bank, Weight Watchers, and National Multiple Sclerosis Society.
During the quarter, Saba established a strategic partnership with Workday where Saba People Cloud solutions will be tightly integrated with Workday HCM. Saba also formed a cross-selling relationship with Kronos. Saba’s industry-leading learning and talent management solutions will be combined with Kronos® recruiting and workforce management suite to offer an end-to-end solution to support the entire hourly employee life cycle.
The following statements are based on current expectations as of the date of this release. These statements are forward-looking, and actual results may differ materially. Saba does not undertake any obligations to update these forward-looking statements.
For fiscal year 2012, ending May 31, 2012, Saba reiterates its forecast of total GAAP revenues to be in the range of $130 million to $133 million and total billings to grow in the range of 16% to 18% in fiscal year 2012 over fiscal year 2011.
Since the Company has successfully transformed to a cloud business, Saba is introducing guidance for cloud billings for fiscal year 2012. Management believes this key metric better reflects the core growth of the company. Saba forecasts cloud billings to grow in excess of 60% in fiscal year 2012 over fiscal year 2011.
The Company also reiterates its forecast for GAAP net loss to range from $0.39 to $0.45 per share and non-GAAP net loss to range from $0.17 to $0.23 per share. Saba also confirms that it expects to return to non-GAAP profitability in the second half of fiscal year 2012.
Fiscal year 2012 non-GAAP outlook excludes certain items including non-cash amortization of intangibles, non-cash stock-based compensation expenses, the impact to revenue of fair value adjustments to deferred revenue due to acquisitions, other acquisition related costs and non-operating reorganization costs.
For more information on Saba, please visit www.saba.com
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Matt Lafata, HRchitect